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2009-12-30 15:30:00 CET 2009-12-30 15:31:21 CET REGULATED INFORMATION Kesko Oyj - Company AnnouncementKesko to transfer statutory employee pension insurance to IlmarinenKESKO CORPORATION STOCK EXCHANGE RELEASE 30.12.2009 AT 16.30 1(1) Kesko has decided to transfer the management of the statutory pension provision and the insurance portfolio to Ilmarinen Mutual Pension Insurance Company in two phases, starting from 1 June 2010. The change will not have an impact on the level or coverage of employees' or pensioners' pension provision. The Kesko Pension Fund's statutory employee pension insurance (department B) covers about 8,700 people. The first phase of the transfer will concern some 3,600 people. The second phase will be implemented at the beginning of 2012 at the earliest. The total amount of statutory pension liabilities to be transferred from the Kesko Pension Fund's department B at the first phase is about €280 million at the end of 2009. The total amount of pension liabilities to be transferred at the second phase is expected to be about €60 million. The transfer is estimated to have a positive effect on Kesko's cash flow, in addition to which it will release capital for business activities. The transfer is subject to the approval of the Financial Supervisory Authority and the Finnish Competition Authority. In addition to the statutory pension provision, the Kesko Pension Fund has arranged supplementary pension provision for people employed by Kesko before 8 May 1998. The Kesko Pension Fund will continue to manage the supplementary pension provision (department A). The Kesko Pension Fund shall pay the assets covering the pension liability transferred to Ilmarinen and the solvency margin, estimated at some €380 million. In addition, the transfer of the statutory insurance portfolio will limit the Kesko Pension Fund's possibilities to own real estate, shares and other assets. Kesko also wants to enter into long-term agreements on the lease terms and conditions of the store sites it uses. Therefore an agreement has been made to dispose of store sites and shares owned by the Kesko Pension Fund and Kesko, in a total value of some €440 million, partly to Ilmarinen and partly to a joint venture owned by Kesko, the Kesko Pension Fund and Ilmarinen, in connection with the transfer of pension liabilities. The completion of the arrangements will have a positive non-recurring income statement impact for Kesko and the Kesko Pension Fund. The implementation of the arrangements under the letter of intent is subject to the approval of the bodies of the contracting parties. Further information: Riitta Laitasalo, Senior Vice President, Human Resources, Kesko Corporation, tel. +358 1053 22060 Arja Talma, Senior Vice President, CFO, Kesko Corporation, tel. +358 1053 22113 Kesko Corporation Paavo Moilanen Senior Vice President, Corporate Communications and Responsibility DISTRIBUTION NASDAQ OMX Helsinki Main news media www.kesko.fi [HUG#1369324] |
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